HRA 08/10/1989 - 29666CITY OF FRIDLEY
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' HOIISING & REDEVELOPMENT AIIT80RITY MEETING, AIIGIIST 10, 1989
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CALL TO ORDER:
Vice-Chairperson Schnabel called the August 10, 1989, Housing &
Redevelopment Authority meeting to order at 7:05 p.m.
ROLL CALL:
Members Present: Virginia Schnabel, Duane Prairie, John Meyer,
Walter Rasmussen
Members Absent: Larry Commers
Others Present: Jock Robertson, Executive Director of HRA
William Burns, City Manager and Director of HRA
David Newman, HRA Attorney
Julie Burt, Finance Officer
APPROVAL OF JUNE 8. 1989. HOUSING & REDEVELOPMENT AUTHORITY
MINLTTES •
MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the June
8, 1989, Housing & Redevelopment Authority minutes as written.
IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CBAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED IINANIMOII3LY.
1. CONSIDERATION OF DEVELOPMENT AGREEMENT FOR STINSKI/HILLWIND
CENTRE OFFICE BUILDING:
Mr. Robertson stated that at the April 13, 1989, meeting, the HRA
approved the conceptual outline for the Stinski/Hillwind project.
Because so much time has passed, staff felt it was important for
the IiRA to review the development agreement before execution of the
final agreement. The staff is satisfied that the development
agreement meets the general direction made by the HRA in April and
recommend approval.
Mr. Newman stated this is direct land writedown of $109,500.
Construction has already started, even though the Development
Agreement has not been signed, and the developer will receive the
money when the project is completed. The attorney for the
developer is in agreement with the recommended changes.
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HOIIBING AND REDEVELOPMENT AIITHORITY MEETING PAGE 2
Ms. Schnabel asked if the developer deviates from the plans and
specifications, does the contract with the HRA become null and
void?
Mr. Newman stated that is correct.
Mr. Robertson stated the HRA previously directed Mr. Commers and
himself to sign the agreement. Unless the HRA members have any
objection, staff will proceed as directed.
The HRA members were in agreement that Jock Robertson and Larry
Comers should proceed to execute the final development agreement
as previously directed.
2. CONSIDERATION OF ELECTRONIC SECURITY AND ANTI-GRAFFITI SEALER
FOR FRIDLEY PLAZA RAMP:
Mr. Robertson stated Mr. Burns has expressed an interest in
security cameras and wanted the HRA to reconsider what was
previously discussed last fall and winter in addition to getting
cameras and monitoring equipment for some of the holding areas in
the Police Department.
� Mr. Burns stated a few weeks ago they found that the cameras for
the Police Department were not in the package for audio visual in
the Council Chambers, and they sought quotes for six cameras in the
Police Department. While they were doing that, it was his
suggestion to seek an alternate quote for a camera somewhere in the
doorway area of the lower level of the ramp. He thought it might
be a good idea to have at least one camera that might serve a dual
purpose of screening the traffic that is coming into the Police
Department and perhaps screening what is going on in one of the
darker, secluded areas of the ramp.
Mr. Burns stated that in discussions with Bill Hunt, Tim Turnbull,
and himself, they came to the conclusion that in addition to a
camera, some sound protection devices are also needed. As the HRA
members recalled, the last time electronic security for the ramp
was discussed, the Police Department objected to having cameras
because they would have to have a staff person monitoring the TV
monitor, and they did not have a person to do that.
Mr. Burns stated that with the sound devices, however, the person
in the Police Department need not devote full attention to the
monitor. Perhaps they could have the sound devices that would be
activated by a cry for help or a loud pitched disturbance. They
ultimately came up with a plan to mount approximately six speakers
that have the capability of hearing any level of voice or noise in
the ramp, depending on how they are set for loudness. The quotes
!�`, came in at approximately $3,500-3,600 for the camera and
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80IISIN�3 AND REDEVELOPMENT AIITHORITY MEETIN(; PAt�E 3
approximately $7,000 for the speaker system. Total estimated cost
is $10,000-11,000.
]�lr. Prairie asked if having this camera and sound system would
reduce the cost of insurance needed for the ramp.
Mr. Burns stated they have had the risk management company look at
this, but they do not believe it will impact the insurance in any
way. The City Attorney, Virgil Herrick, thinks that in terms of
liability, it is a discretionary matter.
Mr. Newman stated $11,000 is pretty cheap compared to a legal suit
sometime in the future.
Mr. Meyer stated having the extra security will give people some
piece of mind.
Mr. Burns stated that the lower level will be a little darker in
the wintertime because of snow storage by the chain link fence, and
he thought a camera and sound device will give people a better
sense of security.
Ms. Schnabel stated that at an earlier meeting, Mr. Turnbull had
^ said that people should not feel secure just because there is a
camera, as a camera can give people a false sense of security.
Mr. Burns agreed, however, he stated the camera may also act as a
deterrent to a potential perpetrator.
Mr. Burns stated he is concerned that the camera be mounted inside
Lexan or something that will protect the camera so it cannot be
easily stolen or vandalized.
Mr. Rasmussen asked if the company that installs the camera has any
kind of policy whereby they will maintain the camera and sound
device.
Mr. Burns stated that is something that will have to be taken into
consideration, and maybe they can have a maintenance contract with
the company. There would be some additional expense for a
maintenance contract.
MOTION by Mr. Meyer, seconded by Mr. Rasmussen, to authorize the
HRA staff to advertise and receive bids on the camera a�d
monitoring equipment to be reviewed by the HRA at the September HRA
meeting.
IIPON A VOICE VOTE, ALL VOTIN(� AYE, VICE-CHAIRPERBON SCffiJABEL
DECLARED THE MOTION CARRIED IINANIMOIIBLY.
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HOIIBING AND REDEVELOPMENT AIITHORITY MEETING PAGE 4
Mr. Robertson stated that even though the HRA earmarked funds for
painting the lower level white, the Public Safety Director, Jim
Hill, and the Public Works Director, John Flora, feel the lighting
level is adequate. However, John Flora, pointed out that it would
cost less money to paint a sealer on the lower level which would
reduce maintenance costs in the future if there are acts of
vandalism and graffiti. Staff is recommending that the HRA use
part of the money earmarked for painting the interior white to be
used instead for a concrete sealer which will make any future
graffiti easier to remove.
Ms. Schnabel asked if the sealer comes in colors.
Mr. Robertson stated he believed a pigment can be added to the
sealer.
Ms. Schnabel stated that if the sealer comes in colors, maybe the
ramp could be painted with a white sealer.
Mr. Robertson stated he had asked that question, and was told it
would increase the costs significantly back to the level of just
buying the white paint.
^ Ms. Schnabel stated that if in the future it is determined that the
walls should be lighter, can paint be applied over the sealer?
Mr. Meyer stated he believed they could apply a pigment sealer over
the original sealer in later years.
Mr. Robertson stated another thing to think about is if they apply
a color, either paint or a pigment sealer, then where do they stop
when painting the columns? Do they paint one side or all four
sides of the column? If they are satisfied with the natural
concrete color, then it has an architectural unity because they are
not creating different surfaces.
MOTION by Mr. Meyer, seconded by Mr. Prairie, to authorize the
Public Works Director to advertise and receive bids and accept the
low bid for applying a clear anti-graffiti sealer to the lower
level ramp, unless the bid exceeds the amount originally earmarked
for white paint.
IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED IINANIMOIISLY.
Mr. Robertson stated he would like to call the HRA members'
attention to the last paragraph of Mr. Flora's memo on agenda page
2-B regarding the light fixtures that were not purchased. Right
now they have temporary wooden bases covering up the electrical
�''� system. He would propose the HRA wait on this, because they are
going ahead with the TV monitoring. The HRA might decide they want
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$OIISINa AND REDEVELOPMENT AIITHORITY MEETING PAGT 5
decorative metal caps in the future, and it is not necessary to act
on this at this time.
Ms. Schnabel asked that regarding the stress cracks that have
appeared in the main joists of the ramp, can they be assured that
the parking ramp structure is sound? Do they need another opinion
on the stress cracks?
Mr. Meyer stated he would be willing to take a look at the cracks
and see if there is any reason to solicit another opinion on the
soundness of the ramp.
3. CONSIDERATION OF FINANCIAL ASSISTANCE TO RETROFIT EXISTING
GARAGE AND CONSTRUCT DRIVEWAY AT 5755 CENTRAL AVENUE N.E.
Mr. Robertson stated that in December 1986 when the redesign of the
Hathaway/Hackmann/Hillwind/Central intersection was approved, it
was pointed out that Mr. Flaten's driveway would have to be
rerouted. At that time, Mr. Flaten agreed to that and was directed
to get some bids for changing the orientation of his garage from
the north to the south. Staff had hoped to include the driveway
paving in this year's street project. The Public Works Department
took another look at the original proposal and decided there would
^ be a savings in constructing the new driveway by taking the
driveway out on the west elevation rather than on the south
elevation.
Mr. Robertson stated staff has proceeded and have the low bid for
the retrofit of the garage of $2,475. Staff recommends the HRA
authorize the payment of $2,475 to Mr. Flaten towards the
reconstruction of his garage and authorize the Public Works
Director to remove the existing driveway and construct a new
driveway from Hackmann Avenue to the garage at a cost of $3,500.
Also, staff recommends the HRA consider granting the excess
property indicated on agenda page 3-A to Mr. Flaten after the new
intersection is constructed in return for his agreement to maintain
said property.
MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to authorize the
payment of $2,475 to Mr. Flaten towards the reconstruction of his
garage and authorize the Public Works Director to remove the
existing driveway and construct a new driveway from Hackmann Avenue
to the garage at a cost of $3,500. Also, the HRA agrees to grant
the excess property to Mr. Flaten after the new intersection is
constructed in return for his agreement to maintain said property.
IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPERSON SCHNABEL
DECLARED THE MOTION CARRIED IINANIMOIISLY.
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HOIISING AND REDEVELOPMENT AIITHORITY MEETING PAGL 6
4. INFORMATION ON THE COUNCIL COATFERENCE ON SEPTIOR HOUSIPTG:
Mr. Robertson stated NIr. Meyer and Mr. Commers attended the July
31, 1989, Council Conference meeting concerning senior housing
policy. On July 31, the Council discussed potential policies
regarding senior housing and directed staff to research the types
of financial tools that are available to assist senior housing.
Mr. Robertson stated that he assumes that on specific senior
housing proposals, the Council's direction to the HRA is to wait
for City Council direction.
Mr. Burns stated he feels the City Council needs to have some
informal discussions soon and make some decisions on timing and
policy. He stated he did not think staff has a clear sense of
direction at this point from the City Council.
5. INFORMATION ON COUNCIL CONFERENCE ON CENTRAL AVENUE
REDEVELOPMENT•
Mr. Robertson stated that at the July 31, 1989, City Council
Conference meeting, the Council also reviewed a first draft of the
^ proposed long range plan for the renovation of Central Avenue,
primarily from Moore Lake Commons north past Onan, Medtronic, and
the junkyards to Osborne Road. This would be one of the components
of the updated Comprehensive Plan. A number of economic
development, land use conflicts, and sign issues have come up over
the last couple of years, and there is an urgent need for some
consistent long range vision as to how to treat some of these
proposals in this area.
Mr. Robertson stated that as a result of this, the plan identified
a number of potential redevelopment projects in the area, the idea
being that as Moore Lake Commons begins to draw traffic into this
area, this may trigger other development proposals. However, there
are a number of potential, very expensive projects, both in public
works, landscaping, and boulevard treatments on either side of
Central Avenue, as well as redevelopment projects such as
relocating and redeveloping the junkyards. The sense of the City
Council, Mr. Commers, and Mr. Meyer was to send the staff back to
produce a scaled-down version of the original long range plan which
would stress those components of the original draft which are
doable and financeable in the foreseeable future.
Mr. Prairie stated he would like to see them get their priorities
straight. He stated University Avenue is the most visible to the
community. He would not like to see them get 20-30� done on 2-3
projects without finishing one project.
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HOIISIN(� AND REDEVELOPMENT AIITHORITY MELTING PAGE 7
Mr. Burns stated he believed that was Mr. Commers' concern also.
On the other hand, there is not much developable land left in
Fridley, so it makes sense to have some policies in place to guide
development in this area.
Mr. Robertson stated he hopes to have a draft of the proposed long
range plan for Central Avenue at the September HRA meeting.
6. INFORMATION ON 57TH PLACE ENVIRONMEATTAL TESTING AND RAPID OIL:
Mr. Robertson stated he spoke with the geologist from Delta
Environmental who is performing tests on the site. Based on what
the geologist found, there is sufficient indication of potential
ground water contamination and Delta Environmental is requesting
three more testing wells.
Mr. Robertson stated Dave Newman, the HRA's attorney, is advising
that the HRA take no further action on the proposed redevelopment
of the larger 57th Place area until the results of this report are
available.
Mr. Robertson stated the HRA should also be aware that Ashland Oil
has submitted an application for a special use permit and variances
� to redevelop the site. The site does not include the single family
lot to the east previously purchased by Rapid oil Change. Ashland
Oil is proposing to build a two bay drive-through facility very
similar to the one at 73 1/2 Avenue/Highway 65.
7. ESTIMATE: GREENMASTERS - LAKE POINTE MAINTENANCE
MOTION by Mr. Prairie, seconded by Mr. Meyer, to approve the
estimate to Greenmasters in the amount of $4,644.14.
IIPON A VOICE VOTE, ALL VOTIN(i AYE, VICE-CHAIRPERSON BCHNABEL
DECLARED THE MOTION CARRIED IINANIMOIISLY.
8. ESTIMATE: ROYAL ELECTRIC - EAST MOORE LAKE IRRIGATION
MOTION by Mr. Meyer, seconded by Mr. Rasmussen, to approve the
estimate to Royal Electric in the amount of $2,221.96.
IIPON A VOICE VOTE, ALL VOTINd AYE, VICE-CHAIRPERBON 8CffiJABEL
DECLARED THE MOTION CARRIED IINANIMOIISLY.
9. CLAIMS (1916-1931):
MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to approve the
check register dated August 10, 1989.
�i IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CSAIRPERBON SCffiJABEL
DECLARED THE MOTION CARRIED IINANIMOIISLY.
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HOIIBING AND REDEVELOPMENT AIIT80RITY MEETING PAGE 8
Ms. Burt gave the HRA members a copy of the Financial Report for
December 31, 1988.
10. OTHER BUSINESS:
a. SHF Development Corporation
Mr. Robertson stated the HRA members had received a copy of a
letter from SBF Development Corporation addressed to him dated
August 4, 1989. SBF Development Corporation is proposing the
redevelopment of the Cub Food store site on the southwest corner
of Osborne Road/University Avenue. Contrary to their expectations
and their reassurance to the City Council that they would be able
to secure total financing for the project, they are asking the City
to examine the feasibility of using its T.I.F. program to
underwrite about 10% of what is represented as a$5 million
proj ect .
Mr. Robertson stated he had asked Jim Casserly to
analysis of what alternatives are available to the HRA
such a mechanism of underwriting part of the primary
That analysis was just received that morning, and staff
time to review it. He is suggesting that staff
Casserly's alternatives and have a recommendation for
their September meeting.
prepare an
if there is
financing.
has not had
review Mr.
the HRA at
b. Proposed Pro Enqineering Manufacturinq Facility
Mr. Robertson stated the HRA had also received a copy of a letter
from Pro Engineering, Inc., addressed to him dated August 9, 1989,
and a memo he had written to the HRA dated August 9, 1989. Pro
Engineering is outgrowing its existing facilities in Maple Grove
and is considering relocating in Fridley. They are proposing a
24,000 sq. ft. expandable building on the north side of Fireside
Drive between Viking Chevrolet and American Service Corporation.
Mr. Robertson stated this is very similar to the Metal-Tek proposal
reviewed and approved by the HRA last winter (which subsequently
fell through). The total cost of land and building are about
$1,000,000. There is no soil correction, but it will bring in
about 20-30 new jobs and tax base. It is a classic T.I.F.-type
project where there is a minimum type of exposure. They would
accept a second mortgage of 10-15% of the total project costs.
Mr. Robertson stated staff will analyze this proposal further and
will bring a proposal back to the HRA at their September meeting.
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80IIBINa AND REDEVELOPMENT AIIT80RITY MEETINa PAdE 9
c. Ron Clark Construction
Mr. Robertson stated the HRA had received a copy of a letter from
Ron Clark Construction, Inc., addressed to him dated August 8,
1989. This developer is interested in the southwest corner of
Mississippi/University Avenue. They are interested in pursuing a
proposal of approximately 50,000 sq. ft. of retail and a three-
story, 100-unit apartment building. Total development costs are
$10,000,000. It is in the same price range as the Tanurb proposal,
but the mix is different; therefore, he believed taxes on
apartments are about 600 of what they would be on commercial floor
area.
Mr. Robertson stated he will have a quick analysis done comparing
this proposal with the general parameters of the Tanurb proposal
of what kind of increment would be available and what kind of
assistance would be available. He hoped to have this information
for the HRA at their September meeting also.
ADJOURNMENT•
MOTION by Mr. Rasmussen, seconded by Mr. Prairie, to adjourn the
meeting. IIpon a voice vote, all votinq ape, Vice-Chairperson
� Schnabel declared the Auqust 10, 1989, Housinq & Redevelopment
Authority meetinq adjourned at 8:5o p.m.
Respectfully subm' ted,
Lynn aba
Recording Secretary
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